Federal Way is considered moderately expensive in 2025, with average rent for a 2-bedroom apartment at $1,950 and slightly higher grocery and utility costs compared to the national average.
Living in Federal Way, WA costs the average family $4,800 per month before taxes in 2025. For a couple, a comfortable lifestyle requires a gross monthly income of around $4,200. Let’s break down where that money goes.
Housing Costs in Federal Way
Housing is the biggest expense for most Federal Way residents. Typical options include:
- Renting a 2-bedroom apartment: $1,800 – $2,100/month
- Buying a 3-bedroom house: $450,000 – $600,000
Prices vary by neighborhood. Newer developments like Twin Lakes tend to have higher rents and home values, while older areas near downtown are relatively more affordable. Many neighborhoods have optional HOA fees ranging from $200-400 per month.
For buyers, expect to spend around $2,500/month on a mortgage, assuming 10% down. Property taxes add another $400-500 monthly. Renters should budget at least $1,950/month for a decent 2-bedroom.
Utility Costs
Basic utilities in Federal Way cost around $250 per month for a typical apartment:
| Utility | Estimated Monthly Cost |
|---|---|
| Electricity | $80 – $120 |
| Water + Sewer | $60 – $80 |
| Garbage | $30 – $40 |
| Internet | $60 – $80 |
Heating costs spike in the winter, so budget an extra $50/month for gas from November through February. Many newer homes are energy-efficient, which helps control utility expenses.
Groceries and Food
Expect to spend around $400 per person monthly on groceries in Federal Way. A gallon of milk costs about $3.50, a loaf of bread is $2.80, and a dozen eggs run $2.20.
Dining out is a bit pricier than cooking at home. A meal for two at a mid-range restaurant averages $60, while a fast food combo is around $8. Coffee shops charge about $4.50 for a cappuccino.
Taxes in Federal Way
The sales tax in Federal Way is 10%, which is higher than the national average of 7.3%. Property taxes are around 1.1% of assessed value annually.
Washington has no state income tax, so that helps offset the higher sales and property taxes for some residents. Vehicle registration fees are $30-100 per year depending on the car’s age and value.
Transportation Costs
A monthly pass for King County Metro, which serves Federal Way, costs $100. Gas prices fluctuate but average about $3.80/gallon. Car insurance runs around $130/month.
Many residents commute to Seattle or Tacoma for work. Expect to spend $200-300 per month on transportation if you drive, or $100-150 if you use transit. Traffic can be congested during rush hour.
Sample Monthly Budget for Federal Way
| Expense | Single Person | Couple | Family of 4 |
|---|---|---|---|
| Housing (rent) | $1,400 | $1,950 | $2,200 |
| Utilities | $200 | $250 | $350 |
| Groceries | $400 | $800 | $1,200 |
| Transportation | $150 | $250 | $400 |
| Misc. | $500 | $800 | $1,200 |
| Monthly Total (pre-tax) | $2,650 | $4,050 | $5,350 |
Lifestyle in Federal Way
Federal Way offers a mix of urban convenience and suburban comfort. Commutes to Seattle average 35-60 minutes each way. Newer homes are spacious but come with a higher price tag.
The city has many parks, trails, and green spaces. Poverty Bay and Dash Point State Park provide beach access and views of Puget Sound. Schools are above average, making it an attractive place for families.
The main tradeoff is affordability versus proximity to Seattle. You get more house for your money in Federal Way, but sacrifice some time in traffic. It’s a balancing act many residents are willing to make.
Frequently Asked Questions
What salary do you need to live in Federal Way?
To live comfortably, a single person needs to make at least $2,650/month before taxes. For a couple, aim for $4,050/month. Families with children should budget a minimum of $5,350 monthly.
Is it cheaper to rent or buy in Federal Way?
It depends on your situation. Renting a 2-bedroom is cheaper in the short-term at $1,950/month. Buying requires a larger upfront investment but can be less expensive over time, averaging $2,500/month for a typical home.
How much are property taxes in Federal Way?
Property taxes are around 1.1% of the assessed value annually. For a $500,000 home, that equates to $5,500 per year or roughly $460 per month.
Is Federal Way a good place to retire?
Federal Way can be a nice retirement spot if you prefer a slower pace than Seattle but still want access to city amenities. The cost of living is relatively high, so it’s important to have adequate savings or pension income.
What is the job market like in Federal Way?
Many residents commute to Seattle or Tacoma for work. Major employers in Federal Way include Weyerhaeuser, St. Francis Hospital, and the Federal Way School District. The city is working to attract more businesses and diversify the local economy.